Brief Summary
Rick Rule discusses his investment strategies, including taking profits from junior gold stocks, reinvesting in physical gold, and focusing on undervalued sectors like oil and uranium. He emphasizes the importance of buying assets that are currently out of favor and holding them for the long term. Rule also provides an update on Battle Bank, highlighting its unique approach to serving a community defined by ideology and aspiration, and offers insights into potential top-performing assets for 2026, focusing on oil and gas and well-managed small-scale community banks in the US.
- Rick Rule sold 25% of his junior gold stocks to recoup his initial capital and capital gains taxes, reinvesting in physical gold, senior gold producers, and oil stocks.
- He is particularly bullish on the oil sector, citing underinvestment and undervaluation, and owns a variety of oil stocks, especially in the Canadian market.
- Rule sees uranium as a "sure money" investment due to increasing global energy demand and the shift towards long-term contracts, recommending Cameco (CCJ) as a key stock.
- Battle Bank is now launched and will focus on serving self-actualized, conservative investors with unique services like loans secured by physical precious metals.
Intro
Charlotte Mloud from investingnews.com interviews Rick Rule about the gold market, his investment strategies, and potential opportunities in other sectors. They begin by discussing the recent pullback in gold prices and whether it presents a buying opportunity. Rick Rule shares his perspective on the gold cycle and his investment decisions.
Why Rick took profits
Rick Rule explains that he sold 25% of his junior gold stocks to get the remaining 75% for free, eliminating his downside risk. He has been saving in gold since 2000 and hasn't sold any physical gold. Half of the money from the junior gold stock sales went into physical gold and senior gold producers. Rule believes the US dollar will lose 75% of its purchasing power over the next 10 years, suggesting gold prices will increase to match this decline. He advises systematically saving in gold but warns about its inherent volatility. He sold when the junior mining sector was hot, with many companies issuing financings, signaling that cash was worth more than their stock.
What Rick bought next
Rick Rule redeployed the money from his junior mining stock sales into physical gold, larger royalty companies, and oil stocks. He believes gold will perform well over the next 10 years but wanted to own derisked beta rather than alpha for his portfolio. He invested in high-quality companies like Franco-Nevada, Wheaton Precious Metals, and Agnico Eagle. Rule also bought oil because it is a hated sector, noting that buying what the market despises can be a lucrative strategy. He anticipates the oil market moving from hated to tolerated, which he sees as an easy way to make money.
Oil/gas stocks Rick owns
Rick Rule discusses his oil stock holdings, starting with ExxonMobil, which he considers the finest oil company in the world and believes is selling at a 40% discount to its net present value while paying a 4% dividend. He notes that the oil industry is underinvesting in sustaining capital by about $2 billion a day, suggesting that current production levels are unsustainable and oil prices will rise. Rule also owns Chevron, Occidental Petroleum, Devon Energy, and Equitable Resources. He is particularly adding positions in Canadian oil companies like Canadian Natural Resources, Suncor, Freehold Royalties, Prairie Sky, ARC Resources, Tourmaline Oil, Paramount Resources (POU), and Birchcliff Energy, citing their undervaluation compared to US companies and better growth runways.
"Sure money" in uranium
Rick Rule identifies uranium as a "sure money" investment due to the expected doubling of world energy demand in 25 years and the need for base load, non-carbon-generating power. He points out that the uranium market is in a structural deficit, with plants not being shut down as scheduled and new plants being built. The uranium market is shifting from spot pricing to long-term contracts, providing revenue certainty for producers and lowering the cost of capital.
Uranium stock strategy
Rick Rule recommends Cameco (CCJ) as the best way to invest in uranium, considering it the bellwether for the sector. He acknowledges that Cameco's stock price may fall by 35% but believes uranium is a 15-year no-brainer investment. He also comments on the deal between Cameco, the US government, and Brookfield for nuclear reactors, viewing it as indicative of the return to public favor for uranium. Rule believes Westinghouse's technology will become the premier processing technology in the world, with Brookfield providing project finance expertise and Cameco leading in uranium technology.
Update on Battle Bank
Rick Rule provides an update on Battle Bank, stemming from an earlier effort called EverBank, which they built to $28 billion in deposits before selling. After a 4.5-year wait for regulatory approval, they bought a small bank to expedite the process. Battle Bank aims to serve a community defined by ideology and aspiration, targeting self-actualized, conservative investors. The bank will offer interest on checking accounts, allow savings in 20 currencies, and provide retail loans secured by physical gold, silver, platinum, and palladium. The bank is launched and testing its systems with the founders' money, with plans to offer services to shareholders in December and to their waitlist of 19,000 people in January.
Sectors to watch in 2026
When asked about the top-performing asset for 2026, Rick Rule identifies two sectors with favorable risk-to-reward profiles: oil and gas, and small-scale focused community banks in the United States with less than $2 billion in assets under management. He notes that these community banks are dirt cheap and, if well-run with a focused community and strategy, can be earnings machines.
Outro
Rick Rule encourages viewers interested in his thoughts on natural resource stocks to visit ruleinvestmentmedia.com, where they can list their resource stocks for a free ranking from 1 to 10. Charlotte Mloud thanks Rick Rule for his insights and reminds viewers that the link to his website will be in the video description.
